Chapter 7 Quiz
Procurement takes place within a formalized framework consisting of budget cost projections, and profit considerations.
True
Technological change is an environmental factor influencing business buying decisions.
True
The business market features a limited number of buyers compared to consumer markets.
True
The buying center is an informal group whose size and composition vary among purchase situations and firms.
True
The primary motivation of government purchasing is to provide some form of public benefit such as national defense or pollution control.
True
When Cannondale purchases aluminum for use in its bicycle frames, the company is participating in the commercial market.
True
A buying center is a basic component of a firm's formal organizational structure.
False
Gatekeepers in the buying center affect the buying decision by determining which individuals within the organization will be part of the buying process.
False
Geographic location is one of the criteria considered during demographic segmentation of the business market.
False
Governmental organizations represent the largest segment of the B2B marketplace.
False
Personal selling plays a much bigger role in consumer markets than in business markets.
False
The commercial market consists of wholesalers and retailers who purchase goods primarily to sell it to the final consumers.
False
The distribution channels in consumer markets are relatively shorter compared to those in the business markets.
False
The term "reseller" is synonymous with "retailer", as this is the only type of participant in this market category.
False
Marketers need to be thoroughly familiar with the organizational buying process which always follows a sequence of seven steps.
True
Not-for-profit organizations are considered to be a part of the business market.
True
A firm deciding to purchase more energy-efficient machines in response to rising fuel prices illustrates the first step in the business buying process.
True
As compared to business-to-business marketing, consumer marketing puts greater emphasis on advertising.
True
B2B relationships tend to last longer than those in the consumer market.
True
Business market customers may require different levels of product customization, which can have an impact on how an organization segments these customers.
True
Buying practices can differ among institutions of the same type.
True
Competitive bidding is common when the product is nonstandard, complex, or custom-made.
True
End-use application segmentation focuses on the ultimate way in which a business purchaser will use a product.
True
In the automobile industry, suppliers of components and assemblies frequently build plants close to their customers.
True
Marketers must be well versed in the technical features of their products to effectively address the concerns of all people involved in the buying decision.
True
